During the 1990s, U.S. government spending declined from 21 percent of GDP in 1991 to 17.8 percent of GDP in 1998. Since government spending is a component of AD, what would this decline do to the AD curve, all else equal?

1. Government spending, G, is one of the four components that make up aggregate demand. 2. A decline in G, with the other components unchanged, lowers total spending at every price level. 3. A curve showing lower total spending at every price level has shifted to the left. 4. This is a demand-side change, so it moves the AD curve rather than the AS curve, ruling out option D. _Source: OpenStax Principles of Macroeconomics for AP Courses (CC BY 4.0), Ch 10 "The Aggregate Demand/Aggregate Supply Model", section 10.4 | Shifts in Aggregate Demand_